According to the development plans announced for
China's 12th five-year plan period (2011-15) by the governments of Xinjiang, Gansu and Shaanxi in the Northwest
China region, total consumption of steel products in the region is expected to reach 60 million mt by 2015, while total regional steel
production capacity is also anticipated to reach 60 million mt.
Currently, Xinjiang, Gansu and Shaanxi each have an annual steel
production capacity of 10 million mt. Xinjiang region-based Bagang Steel, a subsidiary of Baosteel, is investing RMB 30 billion ($4.818 million) in its new expansion project. After the completion of its project, Bagang will have 10 million mt capacity at its main steel base, 3 million mt capacity at its iron and steel base in Baicheng, in the south of Xinjiang, and 2 million mt capacity at its steel project at Ili in northern Xinjiang.
Meanwhile, Gansu Province-based Jiuquan Steel Group, which had sales revenues of RMB 84.424 billion ($13.5 billion) in 2011, is targeting an annual steel
production capacity of 13 million mt by 2015. Also, at present, in Shaanxi Province Shaan Steel Group's subsidiaries Longgang Steel and Hanzhong Steel have respective steel output capacities of 7 million mt and 3 million mt, giving a total steel output capacity of 10 million mt for the group.